Inside the R4bn money trail rocking the DA and Mark Burke

SARB court papers reveal how fintech company Kastelo, linked to DA MP Mark Burke, allegedly used the foreign-exchange allowances of 891 clients to facilitate transactions worth about R4 billion. Kastelo disputes the allegations and says its business model was lawful.

South Africa has been rocked by allegations that billions of rands were moved offshore through a fintech company linked to Democratic Alliance (DA) MP Mark Burke .

Kastelo, which is linked to Burke, is under investigation by the South African Reserve Bank (SARB) over suspected breaches of the country’s exchange-control laws over the money's movement.

It is alleged that the company moved R4 billion offshore, using the foreign-exchange allowances of individual South Africans to acquire foreign currency and transfer it out of the country, without the individuals being aware of what was being done in their name.

The allegations caused a political headache for the DA, which initially stood by Burke but has since made a U-turn and removed him from Parliament’s finance-related committees while the matter is being investigated.

Kastelo went to court to challenge the Reserve Bank’s decision to block its funds, but the court dismissed the application and allowed the blocking order to remain in place.

According to the Reserve Bank’s court papers, the money was moved offshore through a model that relied on Kastelo’s clients' foreign-exchange allowances.

Under the bank's regulations, individuals have access to a Single Discretionary Allowance (SDA) of up to R1 million a year and Foreign Investment Allowance (FIA) of up to R10 million a year to move money offshore.

According to the bank, Kastelo had 891 clients, giving the company access to R891 million in SDA allowances and R8.9 billion in FIA allowances in an annual cycle.

The bank alleges that Kastelo used these allowances to facilitate the purchase of foreign currency and the transfer of funds out of South Africa.

"The dominant purpose of the business model is to circumvent the Exchange Control Regulations by facilitating acquisition of foreign currency for the applicant’s own benefit through the use of third parties without permission from the department."

The Reserve Bank said that by November 21, 2025, its investigation had identified transactions worth about R4 billion that it suspected were linked to exchange-control violations.

The bank’s concern was that the allowances may not have been used for the clients’ own investments, but to move money offshore for Kastelo's benefit.

The court papers say some clients were offered bonuses of up to R2,000 for use of their SDA and up to R10,000 for using their FIA.